A technical problem facing those interested in evaluating large portfolios of financial instruments is that the evaluation problems are very complex and the current technical solutions for evaluating them are not efficient to permit a timely analysis. Evaluation of the portfolios are defined by many permutations, constraints, and variables, such that when a significant number of financial instruments need to be evaluated, the complexity of the problem is too large to solve in a timely and efficient matter. Current technical solutions are inefficient because the problems are not efficiently solved to permit evaluation of the financial instruments in a timely manner to react to different potential scenarios that may arise.
One specific application where this problem arises is in the evaluation of insurance portfolios. Insurance portfolios generally comprise a significant number of financial instruments, such as insurance policies. Each financial instrument within the portfolio has an expected value for a given scenario. A scenario is, for example, a different event, such as a hurricane, earthquake, flood, wind storm, hail storm, ice storm, snow event, fire, having a certain severity. Because the events vary in severity, there are many different scenarios for each type of event. It is helpful to evaluate a portfolio of insurance financial instruments under the many different events at different severity levels to determine the value of the financial instrument under each event and each severity. It is further helpful to determine how to maximize or minimize values associated with the portfolio. For example, it is desirable to evaluate how to maximize the profits of the financial instruments for a given risk, or how to determine the risk for a given desired profit. Generally, the current technical solutions for doing so are not efficient and timely to permit timely decisions based on evaluating this data. The inventions disclosed herein address that problem by providing new technical solutions that permit the timely and efficient evaluation of the portfolio such that it can be optimized. The timely evaluation permits consideration of which instruments to sell, buy, adjust pricing, or adjust policy terms.